GOP tax plan: Congressional District 3 fact sheet

November 27, 2017

GOP tax plan: Congressional District 3 fact sheet

November 27, 2017

U.S. Representative: Joyce Beatty

Tax proposals from the Trump Administration and Congressional leaders threaten deep reductions to many critical services used by Ohio residents. This fact sheet highlights the individuals in each Congressional district who use important federally-funded services, and how they may be affected. Figures represent the current number and percentage of residents served by programs for each district. These are not estimates of the impact of potential federal proposals, either in terms of residents who would lose services or the amount of funding that would be cut.

The Supplemental Nutrition Assistance Program (SNAP) serves a broad spectrum of low income people. In FY 2015, SNAP provided about $2.53 billion dollars in food benefits to a monthly average of 1,676,263 people in Ohio. SNAP has an economic multiplier effect; every dollar in new SNAP benefits results in $1.80 in total economic activity. Proposed cuts to federal supports that help families afford the basics of food will hurt working families, many of whom have children under 18. The current tax reform plan would shift huge new costs to Ohio and reduce or eliminate food assistance for many. Many families, including those with children and seniors, would lose aid they receive from the SNAP. Cuts to this program harm working families, children, and those who live with disabilities.

The tax plan proposed by Congress could also lead to cuts in federally supported educational supports that help low-income students access higher education. Budget proposals put forth by President Trump and Congressional Republicans both include deep cuts to federal student aid. The federal Pell Grant Program provides need-based grants to low-income undergraduate and certain post-baccalaureate students to promote access to postsecondary education. Federal Perkins Loans and federal unsubsidized loans provide low-interest loans for both undergraduate and graduate students. These programs help make education accessible for low-income students.

The Senate GOP tax bill includes a repeal of the Affordable Care Act’s (ACA) individual mandate, which requires individuals to buy health insurance through the ACA marketplaces if they do not have coverage through other means. Removing the individual mandate would affect health care premiums for the hundreds of thousands of Ohioans who rely on ACA coverage to access medical care and mental health benefits.

Congressional tax bills include removing the State and Local Tax (SALT) deduction, which would drastically impact about a third of Ohioans. Nationally, SALT is currently used by about 30 percent of all taxpayers, who are able to avoid being taxed twice on the same income. SALT makes it more affordable to own a home, through deductions on property tax and mortgage interest. It also encourages spending, through deductions on charitable donations and sales tax. Changes in SALT will affect all Americans, driving changes in the housing markets, and cause a loss in wealth for many Americans. This will also create pressure on state and local governments, making it harder for them to raise revenue.